Shein slashes profit, raises prices under new EU parcel tax
Shein’s operating profit fell by half in the first half of the year after the EU imposed a 3‑euro tax on low cost packages from July 1. In Europe, its revenue fell 13.9% in the second quarter to $3.8 billion. The EU’s 3‑euro levy applies to each distinct product type in small ecommerce shipments from outside the bloc, starting July 1.
Shein responded by raising its European prices and cutting advertising spend in the second quarter. It also began expanding its European logistics network to mitigate the tax’s impact.
What we know
The EU levies a 3‑euro tax on each distinct product type in small e‑commerce shipments from outside the EU, effective 1 July.
Shein’s operating profit fell by half in the first half of the year.
Shein’s European revenue dropped 13.9% in the second quarter to $3.8 billion.
In the second quarter, Shein raised its European prices and cut advertising spend.
Shein is expanding its European logistics network.